Time Warner Attains New High - Analyst Blog
April 10 2013 - 6:40AM
Zacks
After attaining a high of $58.02 on
Mar 28, shares of Time Warner Inc. (TWX) further
soared to touch a new high of $59.09 yesterday.
Shares of this Media and
Entertainment company eventually closed at $58.80, rising
approximately 18.8% year to date. The company currently trades at a
forward P/E of 16x, at par with the peer group average.
Time Warner has been expanding its
digital presence, enabling consumers to enjoy its content through
numerous platforms and devices. Alongside, it has entered into
several content distribution deals, which strengthen its
multichannel subscription model by adding more platforms to deliver
its content.
Meanwhile, Warner Bros. became the
first movie studio to offer video on demand, and acquired Flixster,
a movie search application on smartphones and mobile devices. The
company also launched a digital movie technology, UltraViolet, via
which consumers have the choice to watch movies on their preferred
Internet-connected devices. The device is available in the U.S.,
Canada and the U.K., and now the company plans to launch the
technology in Australia, France, Germany, Irelandand New
Zealand.
Alongside, Time Warner has been
actively managing its cash flows returning much of its free cash to
shareholders via dividend and share repurchases. During the last
reported quarter, the company generated free cash flow of $990
million. Time Warner hiked its quarterly dividend by 11% to 28.75
cents a share and announced a new share buyback plan of $4 billion.
From Jan 1, 2012 through Feb 1, 2013, Time Warner bought back 84
million shares, aggregating $3.5 billion.
Going forward, this Zacks Rank #3
(Hold) stock projects low double-digit growth rate in earnings per
share for 2013.
Besides Time Warner, companies such
as V.F. Corp. (VFC), The Walt Disney
Company (DIS) and The Home Depot, Inc.
(HD) achieved new 52-week highs of $170.56, $59.24 and $71.57,
respectively, on Tuesday, Apr 9.
DISNEY WALT (DIS): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
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